All other things being equal, which one of the following is most likely to cause a reduction in a country's surplus on the current account of its balance of payments?
An appreciation in the exchange rate of the domestic currency
Implementation of contractionary monetary policy
A decline in the household marginal propensity to import
Stronger macroeconomic growth in major foreign export markets
310 exam-style questions on AQA A Level Economics 2.6 The international economy (A-level only), covering 2.6.1 Globalisation, 2.6.2 Trade, 2.6.3 The balance of payments, 2.6.4 Exchange rate systems, and 2.6.5 Economic growth and development. Each one has a worked solution and a mark scheme showing where the marks go.